- La Liga files EU complaint over alleged $1B foreign subsidies distorting competition
- Tebas claims financial system manipulation since 2008 Abu Dhabi takeover
- Case could set precedent for non-EU club ownership regulations
European football faces its most consequential financial regulation battle since Financial Fair Play began. The Spanish league's formal complaint to the European Commission alleges Manchester City received over $800 million in undisclosed subsidies from Abu Dhabi-linked entities between 2009-2018. This coincides with their acquisition of global stars like Kevin De Bruyne and three Premier League titles during that period.
Industry analysts note the timing coincides with UEFA's revised Financial Sustainability Regulations (FSR) taking effect in June 2024. Unlike previous FFP rules focused on club revenues, FSR limits owner contributions to 90% of costs by 2025. This complaint tests whether third-party commercial deals count as hidden subsidies,explains sports lawyer Maria Fernández. If proven, it could force City to divest partnerships with 8 UAE-based sponsors.
The Bundesliga's 50+1 ownership rule offers a regional contrast, requiring German clubs to maintain majority fan ownership. While criticized for limiting investment, it prevented the debt crises seen in Spain's La Liga during COVID-19. Tebas argues: Unchecked state-backed clubs create unsustainable wage inflation. Premier League salaries grew 25% faster than revenues last year.
Manchester City maintains all partnerships represent fair market value, citing Etihad's $600 million stadium naming rights deal as comparable to Real Madrid's $500 million agreement with Emirates. However, leaked documents suggest Abu Dhabi's tourism department covered 80% of Etihad's sponsorship payments - a claim City vehemently denies.
With 14 current Champions League clubs now under financial investigations, this case could reshape football's economic landscape. The European Commission's preliminary findings are expected before 2025 Champions League reforms take effect.
